OREGON TRANSPORTATION PLAN UPDATE Sustainable Transportation and Sustainable Development. Table of Contents

OREGON TRANSPORTATION PLAN UPDATE Sustainable Transportation and Sustainable Development Table of Contents INTRODUCTION... G-1 What is Sustainability... G-1 Transportation Sustainability... G-3 Motivations for Sustainable Development and Sustainable Transportation... G-4 Worldwide Ecological Trends Related to Transportation Trends... G-5 Oregon Ecological Trends Related to Transportation Impacts... G-6 Economic Implications... G-7 OREGON SUSTAINABILITY POLICY FRAMEWORK... G-7 Governor s Executive Order on Sustainability... G-7 Oregon Benchmarks... G-8 Oregon Department of Energy... G-9 Oregon Statewide Land Use Program... G-9 Oregon Transportation Plan Policy... G-9 ODOT Sustainability Practices in Place... G-10 SUSTAINABLE TRANSPORTATION PRACTICES AND STRATEGIES... G-10 Land Use Strategies... G-10 Technology... G-13 Pricing Strategies... G-13 Education and Community Involvement... G-16 BARRIERS TO SUCCESSFUL IMPLEMENTATION... G-18 SUCCESSFUL IMPLEMENTATION... G-19 CONCLUSION AND RECOMMENDATIONS... G-19 APPENDICES... G-22 Appendix A: Executive Order 03-03, A Sustainable Oregon for the 21 st Century... G-22 Appendix B ODOT Sustainability Practices in Place... G-26 Appendix C: European Strategies for Sustainability... G-28

OREGON TRANSPORTATION PLAN Background Paper Sustainable Transportation and Sustainable Development INTRODUCTION A key component of the update to the Oregon Transportation Plan (OTP) is to assess the current goals and policies to determine how well they address existing conditions, forecasted trends and recent policy changes. This paper provides background for updating the Oregon Transportation Plan to include policies that address sustainability. Currently, sustainability is not addressed directly in the OTP although there are several policies that support sustainable practices. This paper addresses the motivations for sustainable practices, outlines practices in the Oregon Department of Transportation, Oregon, the United States and Europe, and makes policy recommendations for the OTP update. What is Sustainability Sustainability is creating a balance between the economy, social needs, and the environment in order to ensure healthy and equitable lifestyles and resources for future human, plant and animal communities. ORS 184.421 defines sustainability as follows: Sustainability means using, developing and protecting resources in a manner that enables people to meet current needs and provides that future generations can also meet future needs, from the joint perspective of environment, economic and community objectives. Sustainability puts equal emphasis on environmental quality, economic health and social equity. Economic and social development should not harm the environment within a global context and, if possible, should improve it. Sustainable economics maintains a distinction between growth (increased quantity) and development (increased quality), the notion of quality over quantity. 1 Put another way, natural capital, social capital and economic capital are three interdependent forms of community wealth. Natural capital includes both nonrenewable resources (such as petroleum and coal) and renewable resources (such as wood and solar power). Social capital includes all of the human contributions and involves social equity; all people have the right to equitable return for their work, adequate food and shelter, and a healthy community. Economic capital is not based on the growth in dollar value of goods and services, as the Gross National Product is, but is premised on the provision of needed goods and services for healthy human and natural communities. Goods and services may be provided without the exchange of monetary resources. All of the impacts of the provision of these goods and services should be accounted for, including the costs to the environment and society, and the costs that are subsidized through taxes or other transfers. 1 Herman Daley and John Cobb, For the Common Good, Beacon (Boston) 1989. G-1

Sustainability planning is to development what preventive medicine is to health: it anticipates and manages problems rather than waiting for crises to develop. Sustainable development strives for an optimal balance between economic, social, and ecological objectives. 2 The sustainability movement grew out of the environmental movement, heralded with the first Earth Day in 1972. Initial concerns were about pollution, the depletion of natural resources, recycling of materials, and the increased use and development of renewable resources, such as solar energy. These concerns expanded to include global warming, which gained public attention around 1988. In 1983, the United Nations published Our Common Future known as the Brundtland Report. In 1992, the Earth Summit in Rio de Janeiro placed the environment on the global economic agenda. The concept of integrating economic development, community livability, and ecology has become the foundation for sustainable development and sustainable transportation. 3 Economic Development Community Development Ecological Development Transportation investments represent an important opportunity to leverage investments that achieve multiple objectives at one time. Issues related to sustainability are organized by economic, social, and environmental considerations as shown in Tables 1 and 2 below. Table 1: Sustainability Issues Economic Social Environmental affordability equity pollution prevention resource efficiency human health climate protection cost internalization education biodiversity trade and business community precautionary action activity employment quality of life avoidance of irreversibility productivity public participation habitat preservation tax burden aesthetics Source: Victoria Transport Policy Institute 2 Todd Litman and David Burwell, Issues in Sustainable Transportation, Victoria Transport Policy Institute, February 2003, p. 1. 3 Newman and Kenworthy, Sustainability and Cities, Island Press, 1999. G-2

In 2000, Governor Kitzhaber issued an Executive Order on Sustainability that initiated actions for state agencies. In 2001, the Oregon State Legislature signed the Sustainability Act into law. The objectives are listed in Table 2. The Act established a Sustainability Board and initiated a number of innovations in state agencies, including work groups made up of representatives of private industry, organizations and government agencies to research and recommend purchasing and energy policies to be implemented by state agencies. In addition, state agencies began their own review of activities and began to implement changes to support sustainability. One part of the Act addressed the state s policies to assist local communities, requiring that state agencies shall seek to enable and encourage local communities to achieve the following objectives, which are listed in Table 2 below. Table 2: Community Objectives under ORS 184.423 (2) Economic Community Environmental An independent and productive citizenry. Resilient local economies that provide a diversity of economic opportunities for all citizens. Workers supported by lifelong education to ensure a globally competitive workforce. Youth supported by strong families and communities. Downtowns and main street communities that are active and vital. Development that wisely and efficiently uses infrastructure investments and natural resources. Affordable housing available for citizens in community centers. Healthy urban and rural watersheds, including habitats for fish and wildlife. Clean and sufficient water for all uses. Efficient use and reuse of resources, and minimization of harmful emissions to the environment. These sustainable community objectives were implemented first through Community Solutions, a network of state agency and local partner teams throughout the state. The Oregon Solutions Network was then created to move this activity beyond state agency actions. A nonprofit organization now associated with Portland State University, Oregon Solutions creates public-private partnerships to carry out the community objectives through specific projects. Transportation Sustainability Under an ideal sustainable transportation approach, highways would function safely and efficiently with fuel-efficient vehicles occupied by multiple passengers. Public transit systems would be comfortable with frequent and reliable schedules that are well integrated with land G-3

uses so that lengthy trips are needed less frequently to meet people s needs. Bicycling, walking and public transit alternatives would reduce road congestion, increasing the capacity for highway truck movement with just-in-time delivery schedules. Much of the movement of freight would now use rail cars powered by fuel-efficient and low-polluting engines. Both freight and passenger rail would have few schedule delays due to upgraded railroad crossings, passing facilities, and loading and unloading facilities. Aviation and marine services would be seamlessly integrated with other modes of travel making the movement of passengers and goods safe and efficient. All of this would be accomplished within the economic means of the community and would be sited, constructed and operated without adversely impacting the communities they are intended to serve. That is, all three circles in the sustainability diagram above would be integrated and balanced. Table 3 summarizes the key issues that would be balanced and integrated. Other cultural changes would reduce some of the need for freight transport and commuting as communities developed economies that provided many of these resources locally. The goal is no longer focused on moving people and goods, but looks at the larger picture of the most sustainable way to provide for people s needs. Table 3: Transportation Sustainability Issues Economic Social Environmental traffic congestion inequity of impacts air pollution mobility barriers mobility of climate change disadvantaged crash damage human health impact habitat loss transportation facility costs community cohesion water pollution consumer transportation costs community livability hydrologic impacts depletion of non-renewable resources aesthetics noise pollution Source: Victoria Transport Policy Institute Motivations for Sustainable Development and Sustainable Transportation The primary motivation for sustainable development and sustainable transportation is to create a system that avoids resource depletion, avoids adverse impacts to the environment and society, and is affordable. One of the major issues is the need to reduce carbon loading of the atmosphere and the impact of the greenhouse effect, thereby decreasing what are predicted to be catastrophic global consequences. These consequences include changes in precipitation patterns with disruptions in other natural systems and an increase in frequency and violence of storms. 4 Changes could occur so rapidly that natural and social systems would not easily adapt. We are already seeing the extinction of some plant and animal species whose habitat conditions have changed. Another significant issue is the growing awareness that natural capital (resources) is limited. The lack of equitable access to and use of natural resources is also a fundamental issue. 4 Elizabeth Deakin, U.S. Dilemmas and European Experiences, Sustainability and Environmental Concerns in Transportation 2002, Transportation Research Board, p. 3. G-4

Petroleum resources are increasingly scarce and costly as the nation makes a slow transition to other fuels. Growing frustration over the amount of congestion and sprawl and its impact on livability is also contributing to the sustainability movement. Total hours of congestion delay in U.S. metropolitan areas have roughly tripled since 1980 because many areas of the nation have shifted away from public transit, walking, and carpooling to single-occupant auto use. Private vehicle use has increased. Transit trends in Oregon tend to be better than in many other states due largely to the investment made in light rail in the Portland metropolitan area. People s desire for communities that are less auto dependent and that promote personal health is increasing in Oregon and throughout the nation. Many Americans are also expressing a growing concern about a loss of sense of place and community. 5 Worldwide Ecological Trends Related to Transportation Trends One of the major indicators that the earth s resources are not being used sustainably is the fact that human activities are increasing the atmospheric concentrations of carbon dioxide (CO 2 ), methane (CH 4 ), nitrous oxide (N 2 O) and various halocarbons (HCFCs), and, until very recently, chlorofluorocarbons (CFCs). These gases are collectively referred to as greenhouse gases because of their warming influence on the climate. The concentration of carbon dioxide, a key greenhouse gas, has increased 30 percent in the atmosphere since industrialization. The earth has warmed by more than 1 degree Fahrenheit over the last century. The nine warmest years in the last century occurred in the 1980 s and 1990 s. 6 Experts predict that the earth will see a faster rate of climate change in the next 100 years than any experienced during the last 10,000 years. 7 The U.S. is the largest energy user in the world and the largest emitter of greenhouse gases, primarily CO 2. The greenhouse gas emissions from the United States currently account for almost one-quarter of the worldwide total. Transportation activities in the United States are estimated to be the largest single source of greenhouse gas emissions and are responsible for over half of the nation's air pollution as well. Transportation-generated greenhouse gases are primarily carbon dioxide with some nitrous oxide emissions. In addition to greenhouse gases, transportation is responsible for many of the emissions of criteria pollutants that lead to immediate air quality problems, such as high ozone levels and smog. These pollutants include carbon monoxide, volatile organic compounds, particulate matter and nitrogen oxides. Motor vehicles are responsible for 60 percent of carbon monoxide emissions in the U.S. The reductions in pollution from carbon monoxide, volatile organic compounds, and nitrogen oxides from cleaner engines have been offset by the huge increase in vehicle miles traveled. The U.S. transportation CO 2 emissions are expected to double by the middle of the next century unless technological changes are vigorously introduced or demand 5 Tony Hiss, The Experience of Place, 1990. 6 J. T. Houghton et al, Climate Change 2001: The Scientific Basis, Summary for Policymakers, Report of Working Group I, Cambridge Univ. Press, Cambridge UK, 2001.http://www.ipcc.ch/United Nations Intergovernmental Panel on Climate Change, 7 Ibid. G-5

is sharply curbed. On a hopeful note, public transportation generates one-half the carbon monoxide, volatile organic compounds, carbon dioxide and nitrogen oxide per passenger mile as the private auto. 8 Global warming presents a number of challenges to the transportation system. Mid-range projections suggest that the relatively slow rate of the rise of the sea level this century (about 4 to 10 inches, reduced or amplified by regional changes) may increase by a factor of 3. 9 The predicted severe weather and increased flooding may have an effect on transportation and the distribution of goods and services. Warmer temperatures will also reduce combustion efficiency of airplanes, which would both increase costs and require longer runways or a lower load for aircraft. 10 Oregon Ecological Trends Related to Transportation Impacts Transportation is Oregon s single largest contributor to poor air quality. 11 Oregon faces a 32 percent increase in CO 2 emissions between 1990 and 2015. 12 Even with carbon dioxide increases, however, Oregon s air meets the U.S. Environmental Protection Agency s minimum standards for human health nearly 100 percent of the time. The carbon dioxide produced by burning gasoline makes up about one-quarter of the northwest region s total climate-changing emissions. 13 In Oregon, there are 3.1 million motor vehicles registered for roadway use. Oregonians drive more than 31 billion miles and spend more than $2 billion for transportation fuels each year. This represents 27 percent of Oregon s energy use. 14 Sprawling land development is another trend in both the U.S. and in Oregon that threatens sustainability. In Oregon, the land development patterns are less sprawled than other parts of the country due to urban growth boundaries (UGBs). Often development characterized as sprawl in Oregon is occurring at communities edges and typically is within the UGB. According to the Census, the statewide average travel time to work in Oregon was 20.6 minutes in 1990, and 21.4 minutes in 2000. 15 The average travel time in the Portland CMSA 16 increased from 21.7 minutes in 1990 to 24.4 minutes in 2000. 17 Increased travel time means increased fuel use and often increased roadway congestion. 8 Ibid. 9 Michael C. MacCraken, Global Warming: A Science Overview, Global Climate Change and Transportation, Coming to Terms, ENO Transportation Foundation, 2002, p. 10. 10 Ibid. 11 Oregon Department of Energy web site, May 2003,: http://www.energy.state.or.us/trans/altfuels.htm 12 Oregon Department of Energy, Report on Reducing Oregon's Greenhouse Gas Emissions, http://www.energy.state.or.us/climate/gggas.htm 13 Oregon Department of Energy, May 2003, http://www.energy.state.or.us/trans/transhm.htm#commuter%20pool%20vehicles: 14 Ibid. 15 Nancy A. McGuckin and Nanda Srinivasan, Journey to Work Trends in the United States and its Major Metropolitan Areas, 1960-2000, U.S. Department of Transportation, Federal Highway Administration (FHWA- EP-03-058), June 30, 2003. 16 Consolidated Metropolitan Statistical Area. This includes Multnomah, Washington, Clackamas, Columbia, Yamhill, Polk and Marion Counties in Oregon and Clark County Washington. 17 Nancy A. McGuckin and Nanda Srinivasan G-6

Transportation is a source of non-point water pollution. Paved roads and parking lots, for example, are impervious surfaces. Storm water that falls on these surfaces picks up chemicals and pollutants and deposits them into open bodies of water. ODOT is implementing best management practices for stormwater in order to reduce water quality impacts from state highways, bridges and other facilities. Transportation-related pollution prevention practices and improved stormwater management appear to be effective, since water quality in streams has continued to improve during the past decade. Economic Implications While a lot of emphasis has been put on environmental degradation, sustainability requires a balance of these concerns with the issues of a healthy economy. Until recently, most economists have assumed that whatever its social and environmental costs, increased transport provides significant economic benefits. New research indicates that increased road capacity and motor vehicle use may have negative as well as positive impacts. The marginal productivity of increased transportation is declining. In addition, vehicle use imposes external costs that can offset direct economic gains. 18 This recognition supports the need for strategies that achieve economic, social and environmental objectives rather than one objective being traded-off for another. The economic benefits provided by the transportation system are integral to the access to work, mobility for freight, and connectivity between communities that the transportation system provides. These goals can be achieved in a number of ways in addition to expanding highways. Achieving a balanced multimodal system is a major goal of the Oregon Transportation Plan. The United States dependence on petroleum products is an economic issue. In Oregon, petroleum products are imported, and more than 80 percent of the petroleum is used for transportation. 19 As the instability in the world oil market continues, the United States interest in alternative fuels may increase. However, lack of an U.S. national policy is a barrier to transitioning to sustainable fuels and achieving transportation sustainability. OREGON SUSTAINABILITY POLICY FRAMEWORK The State of Oregon has policies that directly support sustainable practices. The major policy areas are embodied in the Sustainability Act, the Executive Orders on Sustainability by Governor Kitzhaber and Governor Kulongoski, Oregon s land use program, the Oregon Benchmarks, and the Oregon Department of Energy s policies. Governor s Executive Order on Sustainability Governor Kitzhaber was the first governor in the U.S. to issue an Executive Order (EO) on sustainability. Governor Kulongoski followed with an EO in 2003 (Appendix A). Other states 18 Marlon Boarnet, New Highways and Economic Productivity: Interpreting Recent Evidence, Journal of Planning Literature, Vol. 11, No. 4, May 1997, pp.476-486; Amy Helling, Transportation and Economic Development; A Review, Public Works Management and Policy, Vol. 2, No. 1, July 1997, pp. 79-93. 19 Oregon Department of Energy, 2003 website. G-7

have since developed similar policies including New York, Delaware, and New Jersey, although none are as far reaching as the Oregon Executive Orders. The Legislature codified much of the Kitzhaber EO into statute in 2001 in an act known as the Sustainability Act. This Act created the Sustainability Board, which oversees implementation of the statute. Governor Kulongoski s Executive Order 03-03, a Sustainable Oregon for the 21 st Century, encompasses sustainable practices that are being promoted within the state. The Executive Order seeks to embed sustainable development into Oregon's economic, social and environmental policies and to turn these concepts into measurable actions. 20 Agency work to date has focused primarily on adjusting internal operations to reduce waste, save energy, and purchase more sustainable products. ODOT has also taken a number of actions to reduce motor carrier emissions, increase the use of the internet for business transactions, and reduce environmental contamination. These activities are described in the ODOT Sustainability Plan and prior reports on sustainability actions taken under the Sustainability Act. Under Executive Order 03-03, ODOT has developed a Sustainability Plan. The draft plan, not yet approved by the Sustainability Board, includes the following ODOT major actions: Implement Oregon Transportation Investment Act III Bridge Replacement Program construction projects in a sustainable manner. Develop an ODOT Maintenance Environmental Management System (EMS). Renew the vision of a balanced, multimodal transportation system that includes sustainability considerations in the update of the Oregon Transportation Plan. In addition, ODOT Divisions have identified a number of other actions that are already underway or are planned. Oregon Benchmarks The goals of the Oregon Benchmarks are three-fold and mirror the sustainability concept of economy, community and environment: 1) quality of jobs for all Oregonians; 2) safe, caring and engaged communities; and 3) healthy, sustainable surroundings. A recent re-examination of what it will take to affect certain trends has led the state to identify new and more specific actions. Oregon Benchmarks currently track the following sustainability indicators related to transportation: - Percent of Oregonians commuting less than 30 minutes. - Percent of Oregonians commuting by non single occupant vehicle mode. - Percent of Oregonians living in communities with daily intercity service. - Percent of urban state and local highways with bicycle lanes and sidewalks. - Annual VMT per capita in metropolitan areas. 20 http://www.oregonsolutions.com G-8

Oregon Department of Energy The Oregon Department of Energy has a number of programs that support sustainability and is developing a new climate change policy that will consider more aggressive actions. 21 Strategies to reduce transportation emissions are key to creating reductions. Current programs include alternative fuel car infrastructure support (e.g., supporting the creation of a network of alternative fuel and maintenance stations), information and education, and tax credits. The Department of Energy promotes alternatives to gasoline and diesel to help meet the objectives of cleaner air, reducing demand on foreign petroleum and diversity of transportation fuel. The alternative fuels (identified in federal mandate legislation) are ethanol, methanol, electricity, compressed natural gas, liquefied natural gas, liquefied petroleum gas, bio-diesel, hydrogen, or hybrid vehicles using a number of fuels. Many of these transportation fuels burn cleaner, come from renewable sources, and originate in North America. The Department of Energy helps support two alternative fuel coalitions that serve communities in the Willamette and Rogue Valleys by providing technical information, promoting alternative fuel use and helping members reduce the cost of new fueling systems. Oregon Statewide Land Use Program The state land use program is the state s framework for growth management, a key measure to achieving sustainable communities. The program promotes orderly growth through comprehensive planning, urban growth boundaries, and other provisions to encourage compact growth. As a result of the 30-year old program, Oregon is generally more compact than other states. For example, between 1982 and 1997 the U.S. population grew by 17 percent but the amount of urbanized land grew by 47 percent. Between 1992 and 1997, Georgia urbanized 1.62 acres for each new resident; Florida urbanized 1.25 acres; and Oregon urbanized 0.56 acre per new resident. 22 Oregon s land use program Goal 12, Transportation, and the Transportation Planning Rule require that local, regional, and state transportation system plans are developed to avoid principal reliance upon any one mode of transportation. 23 Goal 12 Guidelines state that high density developments with concentrated trip origins and destinations should be designed to principally be served by mass transit and that low density areas will be principally served by the auto. More specifically, Goal 12 Transportation Planning Rule requires transportation system plans to be designed to achieve specified vehicle mile reductions per capita within MPO areas. 24 As a result of this policy framework, Oregon is a leader in providing public transit within the Metropolitan Planning Organization areas. Oregon Transportation Plan Policy The Oregon Transportation Plan Goals and Policies support a sustainable transportation system with the OTP s vision of an efficient transportation system through Goal 1. There are currently 21 A new climate change policy is being developed by the Governor's Advisory Group on Global Warming. 22 Arthur Nelson, Lincoln Institute of Land Policy. 23 Oregon Statewide Planning Goal 12, OAR 660-015-0000(12). 24 OAR 660-012-0035. G-9

no goals or policies that use the term sustainability. However, policies that support sustainability are: Balanced Transportation System (Policy 1A) Environmental Responsibility (Policy 1D) Efficiency (Policy 1B) Additional policies that relate to sustainable practices and strategies are referenced by topic in the sections below. Policy 1B, Efficiency is the policy that probably speaks most directly to sustainability. It states: It is the policy of the State of Oregon to assure provision of an efficient transportation system. The system is efficient when (1) it is fast and economic for the user; (2) users face prices that reflect the full costs of their transportation choices; and (3) transportation investment decisions maximize the full benefits of the system. (Full benefits and costs include social and environmental impacts, as well as the benefits of mobility to users, and construction, operations and maintenance costs.) Action 1B.1 Employ economic, social, energy and environmental impacts as a part of the transportation planning and project design process. This should be done on a total system basis rather than optimizing the cost effectiveness of one mode at the expense of another. Including the costs of social and environmental impacts are key to integrating community, environmental and economic values. However, methods to measure the full benefits and costs of social and environmental impacts are not currently fully in place. Identifying the appropriate measures and timeframes to move this forward is challenging. Policy 4G, Management Practices, Action 4G gives some guidance: Consider the use of life-cycle costs in the design and engineering of bridges, tunnels and pavement. In order to establish sound sustainability policies and practices, externalities (social and environmental costs) will need to be applied to more aspects of the transportation system. Under a sustainability agenda, life cycle cost analyses would be more broadly applied. The current bridge replacement program is addressing these issues and will provide valuable feedback on future actions for ODOT. ODOT Sustainability Practices in Place ODOT has a number of sustainability practices in place. The agency has had a long history of supporting reuse, recycling and resource efficiency. Other actions were motivated by increasing efficiency, cutting costs, and improving customer service. With the Governor s EO, attention is being given to additional practices that can be put in place (Appendix A, page G-25). Many of the current ODOT practices that promote sustainability are listed in Appendix B. G-10

SUSTAINABLE TRANSPORTATION PRACTICES AND STRATEGIES The Transportation Research Board (TRB),which is a federally funded national research group, the Victoria Transport Policy Institute and others have researched transportation practices that contribute to sustainable development and a sustainable transportation system. A number of practices found to be effective are listed below with a brief description of how the practice or strategy is being carried out in Oregon and the related Oregon Transportation Plan policy. A full list of European practices researched by the Transportation Research Board is shown in Appendix C. 25 Land Use Strategies The most beneficial land use strategy is people living close to work, shopping and basic services. Providing public transit and convenient and hospitable walking and biking facilities are the next best actions. Urban growth boundaries, comprehensive planning, minimum density development requirements, and transportation investments that encourage center-focused development are effective land use strategies that reinforce sustainable transportation. Oregon is a leader in land use planning and has more communities with compact development characteristics than many places in the country. This is largely due to the statewide land use program that has been in place for over 30 years. OTP Land Use Policy Oregon Transportation Plan Policy 2A, Land Use states: It is the policy of the State of Oregon to develop transportation plans and policies that implement Oregon s Statewide Planning Goals, as adopted by the Land Conservation and Development Commission. Action 2A.1: Support local land use planning with system plans that implement this policy, with the objective of providing the needed level of mobility while minimizing automobile miles traveled and number of automobile trips taken per capita. The Elizabeth Deakin, a Transportation Research Board researcher, estimates that land use planning strategies and aggressive demand management will achieve a six- percent national reduction in greenhouse gas by 2020 and 15 percent by 2040. 26 Travel distance to basic services and land utilization rates are indicators of transportation sustainability. Location-Efficient Mortgages To reinforce and support centrally located housing, Location-Efficient Mortgages (LEMs) are being tested and promoted in parts of the U.S. LEMs allow lenders to increase the amount of mortgage (or home) for which a potential purchaser may qualify based on the lower transportation costs of potential homebuyers and homes located near public transit services. Location Efficient Mortgages are targeted for communities where residents can walk or bike from their homes to services and public transportation. The State of California identifies LEMs 25 Elizabeth Deakin, p. 8. 26 Ibid. G-11

as a major transportation policy and strategy to reduce travel demand and to expand the number of families qualifying for mortgages. Location Efficient Mortgages are being tested in Seattle, Chicago, and Los Angeles. In Chicago, the lowered transportation costs create savings estimated to range between $350-$650 per month due to the availability of services and alternative transportation. No policy currently exists that explicitly supports LEMs in Oregon. Promote Biking and Waking as a Travel Mode Walking and bicycling are inherently sustainable forms of transportation because they use the least energy per kilo of weight moved. By comparison, less than 2 percent of the energy consumed in an auto is used to move the passengers. The rest is used to move the vehicle or is lost in braking, exhaust and heat. 27 Walking offers a combination of access, mobility, low energy use and healthy exercise. While Oregon has a dedicated funding source for bicycle and pedestrian improvements, unlike most states, many streets in Oregon lack sidewalks and bike lanes. The streets are often difficult to cross. Retrofitting existing state and local street networks to accommodate bicyclists and pedestrians is a major and important challenge. During the interviews conducted for the update of the Oregon Transportation Plan, interviewers expressed about the need for sidewalks systems to be completed within the core sections of Oregon communities. Many feel complete pedestrian networks have economic, social and environmental benefits. Designing for autos tends to segregate land uses, increase travel distances, reduce street connectivity and result in wide and busy urban arterial streets with high-speed traffic. The trade-offs are not always clearly made. Decision-making processes that give greater weight to bicycle and/or pedestrian movement is needed. Steps that can be taken include: Creating streets that are safer for pedestrians and bicyclists. Improving street connectivity. Limiting sprawl-inducing land uses. Limiting the number of lanes on highways and city streets to reduce crossing distance and to create an environment that is more in scale with pedestrians. Building quality facilities, including trail networks that are away from the air pollution and noise of busy highways. OTP Bicycle and Pedestrian Policy Policy 2D Facilities for Pedestrians and Bicyclists states: It is the policy of the State of Oregon to promote safe, comfortable travel for pedestrians and bicyclists along travel corridors and within existing communities and new developments. Action 2D.1 states: Make walkways, pedestrian shelters and bikeways an integral part of the circulation pattern within and between communities to enhance safe interactions between motor vehicles and pedestrians and bicyclists, using techniques such as: 27 Hawken and Lovins, Natural Capitalism, page 24. G-12

- Renovating arterials and major collectors with bike lanes and walkways and designing intersections to encourage bicycling and walking for commuting and local travel. - Developing all transit centers near residential areas to be safely and expeditiously accessible to pedestrians and bicyclists. Technology Technology offers many opportunities to increase efficiencies in goods and passenger movement including the ability to access information. Information includes weather, scheduling, location, and facility information. Transportation-related technology trends and benefits are outlined in Technology in Transportation, another Oregon Transportation Plan update background paper. Oregon has a number of integrated, intelligent transportation system (ITS) programs that provide traveler information and improve safety, operations, and maintenance. Global positioning systems are being installed in public transit bus fleets and passenger rail systems to give real time information to operators and riders. Electronic charging devices are increasingly available, making it more feasible to connect users with different transportation systems and charge for the transportation services on a usage basis. An Oregon example is work initiated by the Road User Fee Task Force. 28 They have determined that with available technology, a pricing system based on a mileage fee is practical and can be feasibly implemented by buses, trains and other transit systems and automobiles. Pricing the transportation system is a method to reflect social and environmental costs and provide incentives for choosing alternative modes. Mode Specific Technologies The Green Goat is a hybrid railroad car switcher used in rail yards that has electric traction motors on axles powered by acid batteries. The batteries are kept charged by a small generator driven by a diesel-fueled prime mover. It is estimated that the Green Goat has a capital cost savings of around 30 percent, with a 90 percent reduction in nitrous oxides and a similar reduction in cancer-linked particulate matter. 29 Pricing Strategies Pricing programs are recognized methods of reducing congestion. Methods vary from toll roads to peak period congestion pricing. Congestion Pricing Congestion pricing charges the owner or operator of a motor vehicle a fee for using certain roadways during periods of high congestion. Congestion pricing is typically applied on a geographic basis to heavily congested roads. The way in which congestion pricing is 28 http://www.odot.state.or.us/ruftf/ 29 http://www.railpower.com/greengoat.php G-13

implemented depends upon the type of technology selected and the type of pricing preferred by policymakers. Oregon has no toll roads and only two toll bridges. Variable tolls on urban highways reduce and spread out demand. Alternative Fuel Revenue Tax The Oregon Road User Fee Task Force has prepared a report that makes a case for a new system of revenue collection for the state s roads and highways. The report proposes alternative revenue mechanisms including a fee on vehicle miles traveled within Oregon; congestion pricing, and new facility tolling. Moving these mechanisms forward would promote a more sustainable transportation system while also creating alternative revenue resources. 30 These fees also support the policy of reflecting the true costs of the transportation system by providing user support for highways based on usage rather than a flat rate. Fuel Pricing Strategies Increased fuel cost can help promote alternative modes and investments. Elizabeth Deakin, in research for the Transportation Research Board, estimates that increasing fuel prices by a rate of 3 percent per year would result in a 20 percent reduction in global warming by 2020 and 35 percent reduction by 2040. 31 Incentives to Buy Efficient Vehicles The State of Oregon provides a tax credit incentive of up to $1,500 to encourage Oregonians to purchase alternative fuel vehicles. The tax credits are a dollar-for-dollar credit against State of Oregon income taxes. The Transportation Research Board estimates that a 1.5 percent annual increase in average new vehicle fuel efficiency (through the introduction of new low-emission vehicles) would result in a 15 to 20 percent reduction in global warming by 2020 and 35 percent by 2040 (5 percent of fleet by 2020 and 40 percent by 2040). 32 Carbon Taxes Carbon taxes, an excise tax on fossil fuels, is considered a motivator for automakers to invest in alternative technology more aggressively. Minnesota estimated that a $50 per ton tax on carbon would raise the price of gasoline by 15 cents per gallon and the price of coal-fired electricity (which accounts for 60 percent of Minnesota's overall electricity) by about 1.5 cents per kilowatt-hour. It is estimated that 90 million tons of carbon dioxide were generated per year in 1998 in the State of Minnesota and that one pound of carbon, if burned, generated 3.67 pounds of carbon dioxide. A $50 per ton tax on carbon emissions translates into about a $14 per ton tax on carbon dioxide emissions. One key to using this tax to change consumer preferences would be for this tax to be visible to the consumer. A sports utility vehicle price that is increased by a carbon tax that reflects its rate of emissions should be an informational item for the purchaser. 30 http://www.odot.state.or.us/ruftf/ 31 Elizabeth Deakin, p. 5. 32 Ibid. G-14

Distance-Based Car Insurance and Registration Fees Distance-based car insurance and distance-based car registration fees convert insurance and registration fees to a variable cost related to annual miles driven. A national system of mileage-based automobile insurance is estimated to reduce driving by about 9 percent. 33 This could also reduce travel during peak hours motivated by consumer savings resulting from the lower, off-peak charges. The 2003 Legislature passed HB 2043 which provides a limited tax credit to companies that offer per-mile insurance premiums to customers in Oregon. Support for this promotes the policy that vehicle owners should pay the full costs of their driving choices. This system relates the amount of driving directly to the cost, and provides an incentive to reduce vehicle miles traveled. Car-Sharing Programs Car-sharing programs provide a form of short-term auto rental. A relatively new car-sharing program exists in Portland with about 600 members and a 29-car fleet. Car-sharing is also available in Eugene, Corvallis, Bend, and Salem. Users pay by the hour with some mileage limits and have reciprocal services in Seattle, San Francisco and Los Angeles. The company pays for gas, insurance and maintenance. In Europe, it is estimated that one shared car keeps six off the road. OTP Pricing Related Policies Oregon Transportation Plan Policy 4G Management Practices and the associated actions identify congestion pricing as an efficient transportation system management tool. Policy 4G states: It is the policy of the State of Oregon to manage effectively existing transportation infrastructure and services before adding new facilities. The Oregon Highway Plan, Policy 1G, has a similar objective stating: It is the policy of the State of Oregon to maintain highway performance and improve safety by improving system efficiency and management before adding capacity. ODOT will work in partnership with regional and local governments to address highway performance and safety needs. The related Policy 1G, Action further stipulates how the Major Improvements Policy is to be carried out. Action 4G.3 states: Use demand management and other transportation systems operation techniques that reduce peak period single occupant automobile travel, that spread traffic volumes away from the peak period, and that improve traffic flow. Such techniques include HOV (high occupancy vehicle) lanes with express transit service, carpools, parking management programs, peak period pricing, ramp metering, motorist information systems, route diversion strategies, incident management, and enhancement of alternative modes of transportation including bicycling and walking. 33 Aaron S. Edline, Per-Mile Premiums for Auto Insurance, Institute of Business and Economic Research Economics Department Working Papers, University of California, Berkeley, 2002, Paper E02'318. G-15

Education and Community Involvement In order for sustainability to be effectively achieved, citizens need to be part of the sustainability movement because sustainability reflects a community value. Sustainability involves both changes in citizen behavior and community design. The Transportation Research Board notes that sustainability considerations are affecting people s travel patterns and that education about environmental impacts of motor vehicles influences this trend. Researchers note that both policy changes and community action are needed to address the problem of global warming. The Governor's Advisory Group on Global Warming will include an educational component. The Oregon Environmental Council, the Coalition for a Livable Future, Oregon Solutions and other Oregon non-profit organizations work to educate Oregonians about livability, sustainable development and sustainable transportation issues. The ME3, Sustainable Minnesota plan has developed a public awareness campaign that ties the effects of global warming and rising temperatures to changes to Minnesota s landscapes and businesses. 34 The TravelSmart program is another approach developed in Australia that provides one-on-one education about travel alternatives. The results of a recent TravelSmart pilot study in a Southwest Portland neighborhood showed that targeted participants made an 8 percent reduction in their auto trips. Transportation Demand Management Transportation demand management (TDM) involves educating individuals and communities about changing travel behavior, including shifts in travel time, route, mode and destination. Trip choices include using roads, transit systems, bicycle and pedestrian facilities, and rail. TDM program staff work with local employers to develop on-site or area-specific commute trip reduction programs and incentives. Research shows that over the past three decades changes in the way Americans work and live have made it more difficult for people to change their commuting habits. Commute distances have lengthened; the need to transport children as part of daily commutes has risen along with the increase in single parent and two income households. Work schedules and work location have become more flexible in part due to cellular and computer technology, allowing a highly mobile workforce. A significant segment of the population views their time commuting by car as a welcome time of solitude. Businesses located in suburbs typically include free parking, which removes the greatest disincentive to driving alone. Increasing TDM faces a number of challenges too: Family-wage jobs are increasingly difficult to secure, especially in rural Oregon. Many workers are seeking employment in towns or cities located 50-100 miles from home one way, which increases commute costs; For rural Oregonians that do not have access to a car, their options for employment are limited to the extent of the local transit service or ability to find a ride with a co-worker. 34 www.me3.org G-16

Most rural transit service is targeted towards the needs of the elderly and disabled, and often does not meet the needs of commuters satisfactorily; As the population ages and loses the ability to drive, the need for alternatives to the automobile will increase. This means creating good transit and other mobility options and more pedestrian-friendly urban design standards. The traditional employer-based TDM program elements are being refined or replaced by new programs that address a broader spectrum of the community s travel needs. Socio-economic factors associated with an aging population, increased travel distance to employment, and the potential for targeted outreach to change travel choice could be included in an expanded program. For example, Portland s TravelSmart project shows that people will make modal changes in significant numbers if given information specific to their location and travel needs. TravelSmart shows great promise for creating quantifiable mode change, regardless of the type of trip. ODOT Transportation Demand Management Program Current TDM strategies in Oregon are focused on reducing peak hour traffic congestion by eliminating commute trips. TDM techniques are applied primarily in Oregon s six largest urban areas (Portland, Eugene, Salem, Medford, Albany/Corvallis and Bend) where ODOT funds programs that encourage the use of a variety of travel options. Funding processes for the state s TDM programs vary. IN ODOT Regions 2, 3 and 4, TDM dollars compete with operating funds, resulting in program funding fluctuations. The 2003 Legislature approved an additional $1.5 million biennially for further implementing TDM measures. OTP Transportation Demand Management Policy Oregon Transportation Plan Policy 1A, Balance, recognizes the benefits of creating a balanced set of travel options and of reducing peak hour traffic volumes. Policy 4G, specifically addresses demand management: It is the policy of the State of Oregon to manage effectively existing transportation infrastructure and services before adding new facilities. Action 4G.3 Use demand management and other transportation systems operation techniques that reduce peak period single occupant automobile travel, that spread traffic volumes away from the peak period, and that improve traffic flow. Such techniques include HOV (high occupancy vehicle) lanes with express transit service, carpools, parking management programs, peak period pricing, ramp metering, motorist information systems, route diversion strategies, incident management, and enhancement of alternative modes of transportation including bicycling and walking. G-17

Deployment and Promotion of Alternative Modes Many Oregonians do not live in communities with well-functioning public transportation systems. The deployment and promotion of alternative modes including public transit may be a new effort or an ongoing effort. Public transit services are provided by hundreds of different service providers throughout Oregon. The update of the Oregon Transportation Plan will include an examination of how the delivery of public transit services in Oregon can increase emphasis on service over fleet management. This research may lead to greater efficiencies and coordination between providers. The Brookings Institute suggests: " possibly the only way to improve air quality and reduce energy consumption without imposing new taxes, government mandates or regulations is to increase the use of public transportation." The American Public Transit Association (APTA) estimates that if one in ten Americans used public transit regularly, U.S. reliance upon foreign oil could be cut 40 percent. 35 BARRIERS TO SUCCESSFUL IMPLEMENTATION OF SUSTAINABLE PRACTICES The Transportation Research Board identifies primary barriers to successful implementation of sustainable practices as lack of U.S. national policy and financial support to make changes in the transportation system that would support sustainability. These changes could include alternative fuel development and investment, linking land use and transportation, significantly increasing fuel efficiency, and ensuring that users pay externality costs. Currently, alternative modes are not always as convenient or inexpensive in terms of time and dollars as the automobile. 36 Institutional issues also exist. In most states, transportation and land use responsibilities are under different agencies with different focuses. Oregon is somewhat of an exception with programs that are integrated through the state land use program. Additionally, researchers note that most Americans have had little experience with healthy communities that are not highly automobile dependent. 37 Underpricing the transportation system is identified as a major barrier to promoting and developing alternative modes. Low transport costs increase economic efficiency and productivity, leading to economic development, but transport underpricing has the opposite effect, since it increases total transportation costs. Most claimed benefits of underpricing are really economic transfers, in which one group benefits at another s expense. Educating policy makers, planners, and the public about problems created by underpricing is a key challenge to developing an efficient and equitable transportation system. 38 A State of Washington report 35 For further discussion about fuel availability, see Oregon Department of Energy, The Future of Alternative Fuels, OTP background paper, January 2004. 36 Transportation and The Economy, 2003, OTP background paper 37 Litman, Victoria Transport Policy Institute, 2001 38 Victoria Transport Policy Institute, Transportation Cost Benefit Analysis, p.11-1 G-18